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Tax credits are
credits to be deducted from actual calculated taxes, and,
therefore, represent exemptions larger than the credits
allowed. This credit increases each year until 1987 and, under
present law, remains the same after 1987.
|
Unified
Tax Credit |
|
Death
in |
Credit |
Equivalent Exemption |
|
1981 |
47,000 |
175,625 |
|
1982 |
62,800 |
225,000 |
|
1983 |
79,300 |
275,000 |
|
1984 |
96,300 |
325,000 |
|
1985 |
121,800 |
400,000 |
|
1986 |
155,800 |
500,000 |
|
1987 and
after |
192,800 |
600,000 |
The credit can reduce
or eliminate gift taxes, totally or in part; can reduce or
eliminate estate taxes, totally or in part; or the credit may
be used partially to offset both gift and estate taxes.
However, the amount used against a gift tax is not available
for use against an estate tax. A taxable gift, which excludes
the annual exclusions and exemptions, would be added to the
value of an estate and tax credit given for gift taxes paid
before subtracting the tax credit and determining the estate
taxes due.
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